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A prominent Senator has called out the U.S. Security and Exchange Commission, reprimanding their moves toward crypto firms and companies. Senator Tom made the accusation during a meeting with the finance committee. He stated that the commission abuses its regulatory power, making unconstitutional moves and decisions.
Alleged Power Abuse by Security and Exchange Commission
The rules and decisions made by the United States SEC have begun to generate mixed reactions from citizens. The Commission keeps laying out strict rules for cryptocurrency space/industry regulation. Most of which are claimed to protect crypto traders and innocent citizens from scams, frauds, rug pulls, and other illicit activities.
However, it seems the regulatory actions and policy structures made by the commission are unethical. The regulatory framework seems unconstitutional and hostile against digital assets firms and exchanges.
Earlier, the Minnesota Senator grilled the commission for rolling out structures that discourages digital assets/currency companies’ establishment. Senator Tom further accused that the regulations and policy structure were politically inclined to favor and grill some companies.
Senator Tom mentioned that the ‘industry sweeps’ enforced by Garry Gensler, the commission chairman, were highly violating. He claimed that the SEC was regulating and moving against crypto firms and platforms outside its territory and authority. Gubir Grewal, the director of the commission, was accused of being at the forefront, implementing all the unethical laws.
The SEC was accused of taking non-judicial actions against cryptocurrency companies and firms outside the territory that refuse to abide by their regulations. Such crypto companies were said to have rejected being accountable or questioned by the SEC.
SEC Admits to Taking Action Out of Jurisdiction
After many accusations and reports from different firms, the director admitted guilty. Gurbir Grewal affirmed that they took actions against crypto platforms outside their territory. Although, he never confirmed or consented that their actions were illegal and non-judicial.
Tom stated the act was a deliberate attempt to enlarge their sovereignty. The act by the commission is highly unconstitutional and barbaric. Some crypto companies even reported that the SEC threatens them.
Senator Tom stated that “The actions of the commission have continued to worsen and abusive since the appointment of Gensler as the leader. The commission has become a power-drunk politicizing body, threatening crypto companies and prohibiting good regulations. I believe their actions are highly violating and hostile towards the digital industry and space”.
SEC was also grilled by another congressman, Sherman Brad, who stated that the implementation plan against crypto platforms and firms was illegal. They were also accused of being hypocritical. They regulated and chased after certain companies ignoring major crypto platforms and companies.
A few days ago, the SEC chairman, Gensler, announced his support for Bitcoin and cryptocurrencies. He stated that the commission would relax some regulations to allow more establishments in cryptocurrency.
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